4. On 1st January, 2020, A Ltd. Purchased a machine for ₹2,40,000 and spent ₹10,000 on its erection. On 1st July, 2020 an additional machinery costing ₹1,00,000 was purchased. On 1st July, 2022 the machine purchased on 1st January, 2020 was sold for ₹1,43,000 and on the same date, a new machine was purchased at … Read more
3. A Ltd. purchased a machine for ₹5,00,000 on 1st April, 2020. Further addition were made on 1st October 2020 and on 1st July 2021 for ₹4,00,000 and ₹3,00,000 respectively. On 1st January, 2023, 1st machine was sold for ₹2,85,000 and new machine was purchased for ₹6,00,000. Prepare Machine A/c for three years ending 3Ist … Read more
2. Chandra Ltd. purchased a second-hand machine for ₹8,000 plus CGST and SGST @6% each on 1st July, 2019. They spent ₹3,500 on its overhaul and installation. Depreciation is written off 10% p.a. on the original cost. On 30th September, 2022, the machine was found to be unsuitable and sold for ₹6,500. Prepare the Machinery … Read more
1. On 1st April, 2019, a limited company purchased a Machine for ₹1,90,000 and spent ₹10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be ₹50,000 at the end of sixth year. Give Machine Account and Depreciation A/c in the books of the Company … Read more
30. From the books of Harish Traders following information as on 1st April, 2024 is extracted: Plant and Machinery Account ₹ 25,00,000 Provision for Depreciation Account ₹ 5,80,000 Depreciation is charged on the plant at 20% p.a. by the Diminishing Balance Method. A piece of machinery purchased on 1st April, 2022 for ₹ 5,00,000 was … Read more
29. On 1st April, 2014, Veeru Ltd. purchased a machinery for ₹ 2,50,000 and spent ₹ 50,000 on its installation. On 1st July, 2016, 1/3rd of machinery purchased on 1st April, 2014 was sold for ₹ 15,000 and a new machinery at the cost of ₹ 2,00,000 was purchased on the same date. The company … Read more
28. Ashoka & Co. whose books are closed on 31st March, purchased a machinery for ₹ 1,50,000 on 1st April, 2021. Additional machinery was acquired for ₹ 50,000 on 1st October, 2021. Certain machinery which was purchased for ₹ 50,000 on 1st October, 2021 was sold for ₹ 40,000 on 30th September, 2023. Prepare the … Read more
27. Following balances appear in the books of Kaushal Traders as on 1st April, 2023: 2023 1st April Machinery A/c ₹ 60,000 Provision for Depreciation A/c ₹ 36,000 On 1st April, 2023, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2019 for ₹ 16,000. Depreciation was provided … Read more
26. Bharat Stores purchased on 1st July, 2020 machinery costing ₹ 30,000. It further purchased machinery on 1st January, 2021 costing ₹ 20,000 and on 1st 0ctober, 2021 costing ₹ 10,000. On 1st April, 2022, one-third of the machinery installed on 1st July, 2020 became obsolete and was sold for ₹ 3,000. The company follows … Read more
25. On 1st October, 2021, Rahul Traders purchased a machine for ₹ 25,000 and spent ₹ 5,000 for carriage and freight; ₹ 1,000 for brokerage of the middle-man, ₹ 4,000 for installation. The machine is depreciated @ 10% p.a. on written down value basis. On 31st March, 2024, the machine was sold to Deepa for … Read more